AN ORDINANCE AUTHORIZING CONVEYANCE OF PROPERTY AT THE DULUTH INTERNATIONAL
AIRPORT TO THE CITY OF DULUTH AT NO COST FOR THE PURPOSE OF CREATING A
SEPARATE TAX PARCEL.

BY COUNCILOR STAUBER:

The city of Duluth does ordain:

Section 1.That the proper city officials are hereby authorized to
convey by quit claim deed at no cost to the city of Duluth the below-described
property in St. Louis County, Minnesota, in order to create a separate tax
parcel and to approve the conveyance of the same if and when offered by the
Duluth airport authority pursuant to Laws 1969, Chapter 577, Section 5, subd.
2(e):

That part of the southwest quarter of the northwest quarter
(SW1/4-NW1/4), of Section 1, Township 50 North, Range 15 West, St. Louis
County, Minnesota, described as follows:

Commencing at the northwest corner of said Section 1; thence
south 00 degrees 30 minutes 34 seconds east, assumed bearing, along the west
line of said Section 1, a distance of 2077.91; thence north 89 degrees 29
minutes 26 seconds east 171.96 feet to the point of beginning of the parcel to
be described; thence north 69 degrees 30 minutes 47 seconds east 893.88 feet;
thence south 20 degrees 29 minutes 13 seconds east 514.11 feet; thence south
69 degrees 30 minutes 47 seconds west 503.95 feet; thence southwesterly 392.05
feet, along a tangential curve, concave to the northwest, having a radius of
2018.07 feet, and a central angle of 11 degrees 07 minutes 51 seconds; thence
north 20 degrees 29 minutes 13 seconds west 479.54 feet to the point of
beginning.

Section 2.That the city of Duluth acknowledges and agrees that with
respect to the property the Duluth airport authority shall have all the powers
granted to it pursuant to Chapter 577 of the Minnesota Laws of 1969 including
but not limited to the operating or leasing of the property and the receipt of
revenues therefrom.

Section 3.This ordinance shall take effect 30 days from and after its
passage and publication.

STATEMENT OF PURPOSE: This ordinance authorizes the conveyance by the city to
the city of certain property located at the Duluth International Airport.
This will result in the creation of a separate real estate tax parcel (12.38
acres) from the existing, larger 40-acre parcel. The new parcel constitutes
the proposed “Airport North Business Development Area,” an industrial
development site targeted for aviation-related business development. The site
is also contemplated as a JOBZ site. For these reasons, a separate real
estate tax parcel code is required.

The ordinance also approves the conveyance of the property by the Duluth
airport authority to the city. Pursuant to the statute which created the
airport authority, it has the ability to convey a permanent interest in real
property under its jurisdiction, such as the property in question, only with
the approval by the city as evidenced by an ordinance. From a title
standpoint, the city is the owner of the property on all property records.

Tax base impact summary: the conveyance of the property by the city to the
city creates no tax base impact since this property will remain in city
ownership.